Wall Street Today | S&P 500 Rises, Nvidia, Broadcom Trim Nasdaq Losses
US stocks advanced, with the $S&P 500 Index (.SPX.US)$ continuing its march near a record, buoyed by gains in consumer staples, technology, financials, healthcare and industrials.
Semiconductor stocks, including AI-favorite $NVIDIA (NVDA.US)$ rose, helping trim losses for $Nasdaq Composite Index (.IXIC.US)$ after stellar revenue data from $Taiwan Semiconductor (TSM.US)$ quelled concerns over valuations.
Semiconductor stocks, including AI-favorite $NVIDIA (NVDA.US)$ rose, helping trim losses for $Nasdaq Composite Index (.IXIC.US)$ after stellar revenue data from $Taiwan Semiconductor (TSM.US)$ quelled concerns over valuations.
The S&P 500 gained 0.2% to 5,222.68, staying on an upward trajectory that's now approaching the all-time closing high of 5254.35. The $Dow Jones Industrial Average (.DJI.US)$ advanced for an eight session, settling 0.3% higher at 39512.84. The Nasdaq swung between gains and losses before closing 0.03% lower at 16,340.87.
Gains signaled that corporate earnings are outweighing worries that the Federal Reserve would keep interest rates high longer than the market had anticipated. The CME Fedwatch shows a 48.6% chance that fed funds rate will drop by 25% by September on Friday, compared with 49.4% a day earlier.
MACRO
Federal Reserve Bank of Boston President Susan Collins signaled interest rates will likely need to stay at a two-decade high for longer than previously expected, Bloomberg reported, citing the policymaker's speech at an MIT event Wednesday. She said slower growth was necessary to ensure inflation move closer to the Fed's 2%, though she would not say when rates start to decline.
The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ rose to 4.872, while the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ ticked higher at 4.50.
Consumer sentiment weakened to the lowest in about six months amid persistent worries over sticky inflation, unemployment and interest rates. The University of Michigan index for consumer sentiment fell 13% to 67.4 in May, from 77.2 a month earlier, according to preliminary results. That missed the average estimate of 76 expected on Wall Street.
Inflation expectations for the year ahead rose to 3.5% from 3.2% a month earlier, data showed. Long-run inflation expectations advanced to 3.1% in May from 3% in April.
"While consumers had been reserving judgment for the past few months, they now perceive negative developments on a number of dimensions," Joanne Hsu, surveys of consumers director at the University of Michigan said in the release. "They expressed worries that inflation, unemployment and interest rates may all be moving in an unfavorable direction in the year ahead."
SECTORS
Semiconductor stocks rallied after $Taiwan Semiconductor (TSM.US)$ reported early Friday that its revenue for April reached 236.02 billion New Taiwan dollars ($7.3 billion), up almost 60% from NT$147.9 billion a year earlier. The world's largest contract chipmaker that supplies to $NVIDIA (NVDA.US)$ also said its board approved a NT$4 per share dividend for the first quarter.
Crude oil futures fell amid concerns supply will outpace demand. Citigroup analysts expect Brent crude, the global benchmark, to slump to $74 per barrel in the third quarter after averaging around $86 per barrel this quarter, according to an Opisnet report.
The downward pressure on crude oil could persist after a Russian government official signaled that the Organization of Petroleum Exporting Countries and its allies (OPEC+) could trim their production cuts during the cartel's meeting in June, adding to global supply, the report showed.
West Texas Intermediate $Crude Oil Futures(JAN5) (CLmain.US)$ slipped 1.2% to $78.28 in New York trading.
MOVERS
$Novavax (NVAX.US)$ shares almost doubled after the firm announced a deal with Sanofi to developed a new Covid-19 Vaccine, overshadowing a loss in the quarter. tjhat made the stock the second-biggest gainer onNasdaq.
$Akamai (AKAM.US)$ slumped after providing investors disappointing guidance, making the stock the worst performer on the S&P 500.
$Gen Digital (GEN.US)$ climbed 15% after reporting fourth quarter revenue that beat analysts' estimates. $MARA Holdings (MARA.US)$ fell 7% the company's disappointing quarterly results and Bitcoin prices declined.
$SoundHound AI (SOUN.US)$ climbed Friday after reporting late Thursday a smaller-than-expected adjusted first quarterly loss, whie revenue surpassed analysts' estimates.
$Sweetgreen (SG.US)$ climbed 34%, after reporting revenue in the first quarter that beat analysts' estimates, and raised its outlook for the full year after raising menu prices.
$Broadcom (AVGO.US)$ gained 2.1% amid a wider rally in the semiconductor industry that saw Nvidia, $Analog Devices (ADI.US)$, and $ASML Holding (ASML.US)$ shares rise.
WORD FROM THE HEARD: Mooers, what are you watching?
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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